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‫كـنان البـهنـسي‬

‫مدير مشروع قاعدة بيانات سوق العمل ‪– UNDP‬‬

‫‪kinan.bahnassi@UNDPprojects.sy‬‬
‫‪27 – June 2010‬‬
E-Commerce - Kinan A. Bahnassi
Network of networks
INTERNET
2009 WORLD COMMERCE REPORT
How long to reach 50 mil
users globally?

E-Commerce - Kinan A. Bahnassi


Radio in 30 years;
TV in 10 years;
Internet by 1 year
INTERNET USERS IN THE WORLD -
2009

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Source: UNCTAD 2010
WORLD INTERNET USERS
DISTRIBUTION – 2009

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Source: UNCTAD 2010
MIDDLE EAST AND INTERNET
USAGE - 2009
Middle East Population Usage 2000 Usage 2009 Population User
Penetration Growth
%
Bahrain 728,709 40,000 402,900 55% 907.25

E-Commerce - Kinan A. Bahnassi


Iran 66,429,284 250,000 32,200,000 48% 12,780.00
Iraq 28,945,569 12,500 200,000 1% 1,500.00
Jordan 6,269,285 127,000 1,500,000 24% 1,081.10
Kuwait 2,692,526 150,000 1,000,000 37% 566.67
Lebanon 4,017,095 300,000 945,000 24% 215.00
Oman 3,418,085 90,000 465,000 14% 416.67
Palestine WB 2,461,267 35,000 355,500 14% 915.71

Qatar 833,285 30,000 436,000 52% 1,353.33


Saudi Arabia 28,686,633 200,000 7,700,000 27% 3,750.00
Syria 21,762,978 30,000 3,565,000 16% 11,783.33 Second
UAE 4,798,491 735,000 2,922,000 61% 297.55 Fastest
Yemen 22,858,238 15,000 370,000 2% 2,366.67

Source: UNCTAD 2010


MIDDLE EAST AND INTERNET
USAGE - 2009

E-Commerce - Kinan A. Bahnassi


Source: UNCTAD 2010
INTERNET DEVELOPMENTS IN
SYRIA
 Broadband, ADSL, 3G, and wireless Internet
access are growing and the price is dropping.

E-Commerce - Kinan A. Bahnassi


 One of the fastest growing in the region

 Public access to internet through Libraries and


Cyber Cafés are increasing rapidly.
 Internet access in universities (Public / Private)

 Variety of ISPs for prepaid Internet Cards

 Access to the internet through Mobile Phones.


E-Commerce - Kinan A. Bahnassi
IMPORTANT DEFINITIONS
IMPORTANT DEFINITIONS
E-Commerce - Kinan A. Bahnassi
COMMERCE?
WHY E-
SEVEN UNIQUE FEATURES OF
E-COMMERCE

E-Commerce - Kinan A. Bahnassi


WORLD TRANSACTIONS – B2B

World merchandise trade


13.1

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World B2B e-transactions

10.4

8.88
7.8
7.28

3.6

2003 2005 2007


Source: WTO World Trade Report 2008
E-COMMERCE DEVELOPMENTS IN
SYRIA
 E-commerce revolution is still beginning in Syria
 More and more people and businesses are using the
Internet to conduct commerce

E-Commerce - Kinan A. Bahnassi


 Few products and services come online
 Broadband and wireless Internet access are growing
 New business models based on social technologies
 The E-commerce gives SMEs the same tools as large
companies use to do business.
 Weak competition
 Excellent substitute for many services
 Tool for enhancing national competitiveness
 Creating more job opportunities
WHAT IS E-COMMERCE
 E-Commerce is the electronic exchange of:

E-Commerce - Kinan A. Bahnassi


Goods
Services
Information
Money
E-COMMERCE MATURITY MODEL
3 LEVELS OF DEVELOPMENT
3. c-Business
Integrating/Collaborating with
the back office information
systems,
and connecting with business
partners
2. t-Commerce
Ordering the products online
(transaction),
E-Payment could be available online.

1.i-Commerce
Products Information available on the web,
Buying and selling on the usual channel
e.g. telephone, and fax
E-Commerce - Kinan A. Bahnassi
E-COMMERCE CATEGORIES
E-Commerce - Kinan A. Bahnassi
E-COMMERCE DEVELOPMENTS
THINGS YOU NEED TO KNOW
ABOUT SUCCESSFUL E-
COMMERCE

E-Commerce - Kinan A. Bahnassi


E-Commerce - Kinan A. Bahnassi
E-COMMERCE BUSINESS MODEL
E-Commerce - Kinan A. Bahnassi
DIFFERENT BUSINESS MODELS
E-COMMERCE BUSINESS MODELS
CONT.

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THE E-COMMERCE APPROACH IS
TO GIVE PEOPLE:
What they want,
Where they want it,

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When they want it.

WWW
is purely incidental!
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
VALUE OF E-COMMERCE
Produce Retaile Custome
Supplier Wholesaler
r r r
Traditional Supply Chain

Produce Retaile Custome


Supplier Wholesaler
r r r

Produce Retaile Custome


Supplier Wholesaler
r r r

Disintermediation

Produce Custome
Supplier Electronic Intermediation
r r
Re-intermediation
VALUE OF E-COMMERCE
 In order to business to survive, it needs to change
their business from traditional and product driven
business to more customer centric business.

E-Commerce - Kinan A. Bahnassi


 Business has to expand to new markets (local and
international)
 Business has to differentiate it self more often
than before.
 Business has to maximize the trade off between
efficiency and effectiveness.
 Business has to focus on profitable segments
IMPORTANCE OF E-COMMERCE
BUSINESSES
 Proportionally low venture capital
 Greater economic empowerment through

E-Commerce - Kinan A. Bahnassi


direct market access (disintermediation – cut
middleman)
 More technical skills acquired as a result

 Reaching consumers anywhere and anytime.

 Just in time feedback


PERSONALIZATION
 Nike ID – Design YOUR own Nike shoes
 Dell – Build YOUR own computer

E-Commerce - Kinan A. Bahnassi


 Hallmark – Design YOUR own greeting card

 1800-Flowers – Design YOUR own flowers


bouquet
 Wedding Planer – Plan YOUR own wedding

 Expedia – Plan YOUR vacation

 Priceline – Name YOUR own price


BARRIERS TO E-COMMERCE IN
SYRIA
 Infrastructure: Limited quality of
communication and services
 Rural Access: Still problematic

E-Commerce - Kinan A. Bahnassi


 Illiteracy: Literacy needed for using Internet,
especially among older people/women in
rural areas
 Digital Literacy: Still low
 Policies: enabling environment and
regulations
ENABLING ENVIRONMENTS
INFRASTRUCTURE:
Access to Technology & Connectivity,
Telecommunication Infrastructure, &
Supporting E-Services

E-Commerce - Kinan A. Bahnassi


LEGAL:
Governmental COUNTRY-WIDE
Policies and ACCEPTANCE &
Support, & DIFFUSION
Legal
of E-COMMERCE
Environment
and Practices

SOCIO-ECONOMIC:
Business Environment, Consumer and
Business Practices, & Social and
Cultural
Characteristics
E-COMMERCE MAJOR
REQUIREMENTS
 Security - Encryption and decryption
 Authentication - Digital signatures digital

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signatures and electronic contracts
 Consumer protection - In an electronic
market
 Intellectual property rights – Protection to the
innovator's ideas
 Electronic payments – Involving Central
Banks in e-Commerce policy development
Finally
“Technology is the answer, then

E-Commerce - Kinan A. Bahnassi


what is the question?”

Today, technology has changed, but


the question hasn’t.
WHAT MAKES
YOUR BUSINESS
FAST, FLEXIBLE,

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EFFECTIVE AND
EFFICIENT?
“Be the change you wish to
see in the world”
M. GANDHI

Thank You
Kinan A. Bahnassi